According to Cointelegraph: Bitcoin’s mining difficulty has surged by 378% over the past three years, driven by institutional investments in large-scale mining operations. According to Ki Young Ju, CEO of CryptoQuant, this increase in mining difficulty may be a key indicator of Bitcoin's evolution into a more stable currency by 2030.
Institutional Influence on Bitcoin’s Stability
Bitcoin and the broader cryptocurrency market have historically been known for volatility, which has made them more speculative than stable. However, the growing involvement of institutional investors has driven up mining difficulty, centralizing computing power and creating higher entry barriers for individual miners. Ju believes this institutional dominance could help stabilize the Bitcoin ecosystem over time.
Ju recently stated in an X post that “major fintech players are expected to drive mass adoption of stablecoins within three years,” and by the 2028 Bitcoin halving event, serious discussions about Bitcoin’s use as a currency will begin.
Bitcoin Layer-2 Solutions and Competition from Wrapped BTC
While layer-2 (L2) solutions like the Lightning Network have been hailed as the key to Bitcoin’s scalability, their adoption has lagged behind venture capital (VC)-backed blockchains. Ju emphasizes that institutional support is crucial for the adoption of Bitcoin L2s, which face competition from alternative solutions like Wrapped Bitcoin (WBTC). WBTC integrates Bitcoin into various ecosystems without the need for L2 infrastructure, offering an easier entry point for adoption.
Bitcoin Price Analysis and Stability
In terms of price, Bitcoin has recently reached $69,000, with the $65,000 level now being seen as a crucial support zone. Keith Alan, co-founder of Material Indicators, has noted that holding above the 21-week moving average would signal the continuation of Bitcoin’s short-term uptrend.
With macroeconomic factors and market volatility on the horizon, Bitcoin’s performance will be closely watched by analysts. Some are even predicting that Bitcoin could retest its all-time high before the end of the year.
The Future of Bitcoin as a Currency
As Bitcoin’s mining landscape becomes increasingly dominated by institutions, its potential to evolve into a stable currency by 2030 appears more feasible. With institutional backing and growing market infrastructure, Bitcoin’s volatility could decrease, paving the way for broader acceptance as a reliable currency.
